The Sconi

NFIB's August jobs report highlights a persistent issue faced by small business owners, revealing that 40% reported unfilled job openings in August. This marks a two-point increase from July. Additionally, labor quality as a major small business issue rose to 21%, the highest level since January.

According to NFIB Chief Economist Bill Dunkelberg, “Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions. Owners have grown understandably frustrated as attempts to fill their workforce repeatedly stall and cost pressures continue to rise.”

NFIB Wisconsin State Director Bill G. Smith added, “The NFIB Jobs Report reveals a crucial challenge of finding qualified talent for Wisconsin’s small businesses. To foster growth and success, we must enhance our workforce development initiatives, ensuring our residents are ready to meet the needs of our local economy.”

The report found that 62% of small business owners attempted hiring in August, an increase of five points from July. Among them, 56% reported difficulties in finding qualified applicants, with 31% facing few qualified candidates and 25% none at all.

The demand for skilled labor increased, with 36% of firms seeking skilled workers and 15% looking for unskilled labor. Notably, job openings rose in construction—up five points from July—with 60% unable to fill positions. The highest number of job openings was observed in the transportation, construction, and manufacturing sectors, while agriculture and finance showed the fewest vacancies.

Looking ahead, a net 13% of business owners intend to create new jobs within the next three months, a slight decrease of two points from July. Labor cost as a primary concern for business owners remains steady at 9%, lower than the peak of 13% seen in December 2021.

In terms of compensation, a net 33% of small business owners reported raising salaries in August, consistent with July's figures and the lowest since April 2021. Additionally, 20% anticipate increasing compensation in the coming three months, a slight rise from July by two points.